Proxy to price group benefits

Abstract

A system and method for providing and utilizing a proxy to provide group benefits products is disclosed. The system and method include providing at least one variable for calculating applicability and cost of a group benefits product by proxy, wherein the proxy is provided by information included in at least a workers compensation (WC) system. The at least one variable may include WC average salary, area, industry, blue score and/or median household age. The group benefit product may be a long term disability insurance product and/or a life insurance product.

What is claimed is: 
     
         1 . A group benefits insurance product made by a process involving the steps comprising:
 receiving information from a worker's compensation (WC) system, the information at least including a plurality of WC variables for calculating WC premiums;   mapping the plurality of WC variables for calculating workers compensation to life proxy variables in a transition layer by using general demographic information to proxy individual variables;   providing the mapped plurality of WC variables as life proxy variable to a group benefits system as a proxy for traditional variables used for determining the applicability of group benefits products to calculate a cost of a group benefit insurance product by applying the mapped plurality of WC variables to a plurality of base rates for group benefit insurance products, the group benefits system at least multiplying a plurality of factors from the life proxy variables to derive life proxy base rates configured to determine the base rates for group benefit insurance products, the life proxy variables at least including one of zip code, industry code, and blue score, wherein the multiplying a plurality of factors are based on a statistical modeling of correlations between the WC variables used in the group benefit proxy and life proxy variables;   providing feedback associated with the mapped plurality of WC variables as life proxy variable to a group benefits system to improve the mapping of the WC variables; and   issuing an insurance product in the form of a link to a bindable quote including the calculated cost of the group benefit insurance product to a prospective insured based on the determined rates for group benefit insurance responsive to the prospective insured providing WC information and displaying the insurance product with the bindable quote for the prospective insured to activate.   
     
     
         2 . The group benefits insurance product made by a process of  claim 1 , wherein the at least one variable includes WC average salary. 
     
     
         3 . The group benefits insurance product made by a process of  claim 1  wherein the at least one variable includes area. 
     
     
         4 . The group benefits insurance product made by a process of  claim 1  wherein the at least one variable include industry. 
     
     
         5 . The group benefits insurance product made by a process of  claim 1  wherein the at least one variable includes blue score. 
     
     
         6 . The group benefits insurance product made by a process of  claim 1  wherein the at least one variable includes median household age. 
     
     
         7 . The group benefits insurance product made by a process of  claim 1  wherein the group benefit product is a long-term disability insurance product. 
     
     
         8 . The group benefits insurance product made by a process of  claim 1  wherein the group benefit product is a life insurance product. 
     
     
         9 . A system for providing and utilizing a proxy to provide group benefits products, the system comprising:
 a processor operatively coupled to a communications device, the communication device configured to receive information from a worker's compensation (WC) system, the information at least including a plurality of WC variables for calculating workers compensation, the processor configured to map the plurality of WC variables for calculating workers compensation to life proxy variables; and   a transition layer operating with the processor and associated with a traditional group benefit system, the transition layer coupled with the processor configured to use the mapped plurality of WC variables as life proxy variables to a group benefits system as a proxy for traditional variables used for determining the applicability of group benefits products to calculate the cost of a group benefit insurance product by applying the mapped plurality of WC variables to a plurality of base rates for group benefit insurance products, the group benefits system at least multiplying a plurality of factors from the life proxy variables to derive life proxy base rates configured to determine the base rates for group benefit insurance products, the life proxy variables at least including one of zip code, industry code, and blue score, wherein the multiplying a plurality of factors are based on a statistical modeling of correlations between the WC variables used in the group benefit proxy and life proxy variables,   the processor operatively coupled to a communications device providing feedback associated with the mapped plurality of WC variables as life proxy variable to a group benefits system to improve the mapping of the WC variables; and   the processor operatively coupled to a communications device issuing an insurance product in the form of a bindable quote including the calculated cost of the group benefit insurance product to a prospective insured based on the determined rates for group benefit insurance responsive to the prospective insured providing WC information and a display for displaying the insurance product with the bindable quote to the prospective insured to activate.   
     
     
         10 . The system of  claim 9  wherein the at least one variable includes at least one of WC average salary, area, industry, blue score, and median household age. 
     
     
         11 . The system of  claim 9  wherein the group benefit product is at least one of a long-term disability insurance product and a life insurance product. 
     
     
         12 . The system of  claim 9  wherein the transition layer fills in information for calculating the group benefit product using third party data. 
     
     
         13 . The system of  claim 9  wherein the calculated cost of the group benefits product by proxy is compared to a cost of the group benefits product calculated using the traditional group benefit system. 
     
     
         14 . The system of  claim 13  wherein variations in the comparison are fed back to the transition layer to improve the use of the at least one variable for calculating applicability and cost of a group benefits product by proxy. 
     
     
         15 . The system of  claim 14  wherein the feedback is based on a sold to target ratio. 
     
     
         16 . A method for providing and utilizing a proxy to provide group benefits products, the method comprising:
 receiving information from a worker's compensation (WC) system, the information at least including a plurality of WC variables for calculating WC premiums;   mapping the plurality of WC variables for calculating workers compensation to life proxy variables in a transition layer by using general demographic information to proxy individual variables;   providing the mapped plurality of WC variables as life proxy variable to a group benefits system as a proxy for traditional variables used for determining the applicability of group benefits products to calculate a cost of a group benefit insurance product by applying the mapped plurality of WC variables to a plurality of base rates for group benefit insurance products, the group benefits system at least multiplying a plurality of factors from the life proxy variables to derive life proxy base rates configured to determine the base rates for group benefit insurance products, the life proxy variables at least including one of zip code, industry code, and blue score, wherein the multiplying a plurality of factors are based on a statistical modeling of correlations between the WC variables used in the group benefit proxy and life proxy variables;   providing feedback associated with the mapped plurality of WC variables as life proxy variable to a group benefits system to improve the mapping of the WC variables; and   issuing an insurance product in the form of a link to a bindable quote including the calculated cost of the group benefit insurance product to a prospective insured based on the determined rates for group benefit insurance responsive to the prospective insured providing WC information and displaying the insurance product with the bindable quote for the prospective insured to activate.   
     
     
         17 . The method of  claim 16  wherein the at least one variable includes at least one of WC average salary, area, industry, blue score, and median household age. 
     
     
         18 . The method of  claim 16  wherein the group benefit product is at least one of a long-term disability insurance product and a life insurance product. 
     
     
         19 . The method of  claim 16  wherein the transition layer fills in information for calculating the group benefit product using third party data. 
     
     
         20 . The method of  claim 16  wherein the calculated cost of the group benefits product by proxy is compared to a cost of the group benefits product calculated using the traditional group benefit system.